Yuga Labs executive warns Ether price could drop to $200

Yuga Labs’ vice president of blockchain, known as "Quit," has warned that Ether (CRYPTO:ETH) could plummet to between $200 and $400 in a prolonged bear market.

This prediction, shared in a March 11 post on X, suggests a potential 90% decline from its current price, aligning with historical bear market trends.

Quit dismissed the notion of $1,500 as a bottom for Ether, arguing that a "true bear market" could lead to significantly lower prices.

“A true bear market target, if we’re just getting started, would be ~$200-$400. That’s an 80% drawdown from here, 90% total drawdown — in line with past bear markets,” he wrote.

Quit advised investors to reassess their holdings if they are not prepared for further declines.

The post sparked debate among the crypto community.

Some investors agreed with the grim outlook, while others argued that such a drop would require a systemic collapse similar to 2018.

One user noted that institutional adoption and Ethereum's maturing ecosystem make such extreme declines less likely.

“Positioning for both scenarios is what every smart investor should do,” another commented.

Quit’s warning comes as Ether struggles with a steep downtrend.

Over the past seven days, ETH has dropped by 22%, reaching a low of $1,791 on March 11.

The decline has triggered significant activity among Ether whales attempting to avoid liquidation.

Blockchain analytics firm Lookonchain flagged several large transactions during this period.

One whale dumped $47.8 million in ETH but incurred a $32 million loss to protect their position.

Another whale, holding $121 million in assets, began facing liquidation as Ether prices fell below $1,800.

A wallet suspected of being linked to the Ethereum Foundation deposited over 30,000 ETH ($56 million) into MakerDAO’s Sky vault to reduce its liquidation threshold to $1,127.

While Quit’s bearish scenario highlights potential risks, some analysts maintain optimism for Ether’s long-term prospects due to its institutional adoption and ecosystem growth.

However, the ongoing volatility underscores the importance of cautious positioning in the current market environment.

At the time of reporting, the Ethereum (ETH) price was $1,921.34.